In its April Bulletin, the Reserve Bank of India (RBI) on Tuesday said extreme weather situations may pose a risk to inflation, compounded by extended geopolitical tensions that may maintain crude oil costs unstable. March noticed a slight dip in retail inflation primarily based on the Consumer Price Index (CPI), down to 4.9 per cent after averaging 5.1 per cent within the earlier two months, it added.
The Reserve Bank, which primarily considers CPI in its bi-monthly financial coverage choices, has maintained the important thing rate of interest at 6.5 per cent since February 2023 due to issues over inflation. An article on ‘State of the Economy’ printed within the Bulletin additional stated world progress momentum has been sustained within the first quarter of 2024, and the outlook for world commerce is popping optimistic. Treasury yields and mortgage charges are ticking up in main economies as expectations of rate of interest cuts are being pared.
“In India, conditions are shaping up for an extension of a trend upshift in real GDP growth, backed by strong investment demand and upbeat business and consumer sentiments,” the article stated. The RBI, nonetheless, stated the views expressed within the Bulletin article are of the authors and don’t symbolize the views of the Reserve Bank of India.
Sustained progress of seven% possible for India: RBI
Last week, RBI Monetary Policy Committee (MPC) member Shashanka Bhide stated that sustaining the financial progress momentum of seven per cent in 2024-25 and past is possible on the again of beneficial monsoon, greater farm productiveness and improved world commerce. During 2023-24, the economic system is probably going to file a progress price of practically 8 per cent on account of the great efficiency of the manufacturing and infrastructure sectors.
Recently, the International Monetary Fund (IMF) raised India’s progress projection to 6.8 per cent for 2024 from its January forecast of 6.5 per cent citing bullish home demand situations and a rising working-age inhabitants. The Asian Development Bank (ADB) additionally raised India’s GDP progress forecast for the present fiscal to 7 per cent from 6.7 per cent earlier, saying the sturdy progress can be pushed by private and non-private sector funding demand and gradual enchancment in client demand.
(With PTI inputs)
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